Four borrowers want a judge to stop the July transition of millions of loans out of SAVE. History suggests the timeline won't budge.
With the Education Department days away from forcing millions of loans out of the SAVE plan, four borrowers are making a last-minute legal push to stop it.
On June 23, they asked a federal judge for a preliminary injunction in Havens v. U.S. Department of Education (PDF File), seeking to keep borrowers enrolled in REPAYE, halt the agency's planned transfers, and order immediate forgiveness for those who already reached their 20- or 25-year payment thresholds.
Starting in early July, the Department will begin telling SAVE borrowers they have 90 days to choose a new repayment plan — or be moved to a Standard plan automatically. This lawsuit is the only active effort standing between borrowers and that deadline. However, earlier attempts to keep SAVE and REPAYE alive have gone nowhere, while the state-led challenges that dismantled the plan succeeded.
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Driving The News
On June 23, the plaintiffs in Havens v. U.S. Department of Education filed for a preliminary injunction. On June 24, the judge ordered that the Department of Education file a response by July 1, with a further hearing the week of July 13.
The plaintiffs want the court to halt what they call a "shadow repeal" of REPAYE, keep current borrowers enrolled, and order immediate loan forgiveness for those who already hit their 20- or 25-year payment thresholds.
Why it matters: Starting in early July, the Department plans to notify SAVE borrowers that they have 90 days to pick a new repayment plan or get moved to a Standard plan automatically. The suit is the last active attempt to stop that timeline.
Catch up quick: SAVE was launched in 2023 as a rebrand of the 2015 REPAYE plan, offering the lowest cost income-driven payments and a path to forgiveness. Republican-led states sued, and the Eighth Circuit blocked it nationwide in 2024, parking millions of student loan borrowers in forbearance.
The current Department then settled the case this spring, agreeing to terminate both SAVE and REPAYE.
The Catch
The borrowers argue Congress didn't require these plans to end until 2028, and that the Department skipped notice-and-comment rulemaking. But similar borrower-side efforts haven't moved the needle. This current case has been pending since March and hasn't led to any injunctive relief yet.
The other side: The Education Department has moved to dismiss, arguing a D.C. court can't override the Missouri court that approved the settlement. "There is no SAVE Plan Final Rule for this Court to enforce, so Plaintiffs' complaint automatically fails," the Department wrote.
What's Next
Unless the judge rules quickly, the July notices will go out on schedule. In The College Investor's interview with Under Secretary Kent, there will be tranches of borrowers receiving their specific 90-day notice starting July 1. Borrowers in the SAVE forbearance should plan to choose a new income-driven plan to keep affordable payments and access to loan forgiveness progress.
The College Investor has been tracking this case and the broader SAVE wind-down, including the 90-day deadline borrowers now face. For the roughly 7 million borrowers parked in forbearance, the practical takeaway hasn't changed: run your numbers using a student loan calculator, choose a repayment plan, then switch plans before your window closes.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.